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Air Freight Market Report
Key Note Publications Ltd, Jan 2001
In 2000, the UK air freight market was worth an estimated £1.04bn, up from £907.9m in 1996. Having increased in value by 5% between 1999 and 2000, market growth outstripped that of the overall airline industry that year. The total tonnage carried on UK airlines in 2000 was estimated at 1.2 million tonnes, compared with a total of 5 million tonnes for all members of the Association of European Airlines.
This report covers the market for all air freight, including mail and general cargo carried on scheduled flights in the lower decks space of passenger aircraft, and the mail and other cargo carried on non-scheduled flights by specialist cargo carriers and charter airlines. It does not include cargo carried in military aircraft.
The air transport market has seen consistently strong growth over the last few years in the UK, despite stiff international competition, increased fuel costs and costs related to noise abatement procedures. This trend is expected to continue, although the growth in the passenger sector has been downgraded by analysts. In fact, the strength of the air cargo market is such that Airbus has brought forward its development of the A380 freighter version, and it now seems likely that it will be introduced into service before the passenger version.
The UK market for air cargo is dominated by one carrier - British Airways -which held 53% of the total airline business in 1999, and 54% of the air cargo business. British Airways is the only UK carrier among the top 30 cargo carriers by tonne-kilometres in the world league table, where it takes 8th place, with 4,536 million tonne-kilometres. The largest air cargo carrier in the world is FedEx, which achieved 10,354 million tonne-kilometres in 1999.
Key Note forecasts that the value of the market will grow to £1.33bn, at 2000 prices, by 2006. The industry is very positive about the growth of the air freight market, both worldwide (but with lower growth for the US) and in Europe. The UK is seen as being in a particularly strong position because of its links with Asia and the US.
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